Tokyo. Japanese components maker Nidec Corp said it was increasing capital spending to meet stronger demand for haptic technology, which industry sources say is used in the "force touch" feature in Apple Inc's latest iPhones.

Sources familiar with the matter have said Nidec's vibration motors play a crucial role in the new iPhones by detecting signals from pressure sensors which activate when a finger touches the screen. That helps screens mimic the feel and response of real buttons.

Nidec said it is now planning 90 billion yen ($750 million) in capital investment for the year to end-March, up by a quarter over its initial estimate.

Nidec has not confirmed its role as a supplier to Apple but a company spokesman told Reuters that two-thirds of the increase in spending would be on vibration motors while the rest would go on auto parts.

The company reported a 16 percent rise in second-quarter operating profit to 31 billion yen on stronger demand for precision motors and automotive components.

It did not change its annual operating profit outlook of 130 billion yen, a 17 percent rise over the previous year, citing China's economic slowdown and uncertainty over conditions in Europe.

Reuters